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Business, 30.03.2020 17:14 htx88

Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the dividend yield on a stock index is 3% per annum. The index is standing at 395, and the futures price for a contract deliverable in three months is 404.
What arbitrage opportunities does this create?

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Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the d...
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